Most WiMAX networks deployed in the recent years, are used to provide broadband access to fixed (non mobile) subscribers. Applications using a fixed WiMAX solution can be classified as point-to-point or point-to-multipoint. Point-to-point applications include microwave backhaul and inter-building connectivity within a campus and microwave backhaul. Point-to-multipoint applications include:

1) Broadband for residential, small office/home office (SOHO) and small- to medium-enterprise (SME) markets,

2) SDH/SONET  or fractional SDH/SONET  -like services to businesses,

3) Wireless backhaul for Wi-Fi hotspots.

Clearly, one of the largest applications of WiMAX in the near future is likely to be broadband access for residential, SOHO, and SME markets. Broadband services provided using fixed WiMAX could include high-speed Internet access, telephony services using voice over IP, and a host of other Internet-based applications. Fixed wireless offers several advantages over traditional wired solutions. These advantages include lower entry and deployment costs; faster and easier deployment and revenue realization; ability to build out the network as needed; lower operational costs for network maintenance, management, and operation; and independence from the incumbent carriers.

Although in many developed markets the rate of broadband adoption is slowing down, in most emerging markets broadband adoption is witnessing an impressive growth. Few examples may demonstrate this trend. In Vietnam, the number of broadband subscribers more than doubled over the last year, while in Eastern Europe, India, Middle East and Africa, adoption grew by more than 50%. In these countries, the wired infrastructure is typically insufficient to meet demand from potential subscribers and its expansion is often too expensive.

In addition, the willingness to pay for mobile broadband connectivity is still limited. While demand is set to grow rapidly as more devices and more affordable services become available, most mobile operators do not believe that a mobile data-only network is a priority today, especially as they have plenty of capacity available in their new 3G networks.

The fixed-access market is ideal for WiMAX. The initial cost of subscriber devices (CPE’s) has been relatively high, but it is starting to decrease, making WiMAX a cost-effective technology for basic broadband connectivity, especially in emerging countries where new wired networks are too expensive to roll out and more difficult to protect in terms of competition along the time axis.

The demand for fixed-broadband access can be reliably estimated and addressed through well-focused deployments that are restricted to those areas with a high concentration of high-paying subscribers. This approach allows operators to start by directing available financial resources to the most profitable market segments and then, as the price of subscriber devices decreases, address the wider market. In a further stage, operators may decide to expand the network to support mobility.

Early fixed deployments will establish the economies of scale that are needed to lower the price of subscriber devices and enable operators to gradually increase the scope and functionality of their WiMAX networks, growing them as the demand for broadband services grows.